It is the intention of the Fiscal Responsibility Act of 2007 for the Federal Government of Nigeria to shore up its revenue base by mandating government agencies to remit 80 percent of their operating surplus. Contrary to this intention, compliance with the stated remittances from these agencies is fast becoming a difficult nut for the government to crack.
Barely 2 weeks after the House of Senate raised claims of irregularities in remittances to the government, another reputable institution has confirmed that federally controlled Ministries, Departments, and Agencies are the chief contributors to the government’s failure in generating more revenue due to sharp practices like failure to remit operational surplus by erring MDAs.
On the heels of the aforementioned, The Fiscal Responsibility Commission, FRC has recently come out to indict 32 MDAs for an alleged failure to remit a whopping sum of over ₦1.2 trillion as operating surplus to the federal government’s Consolidated Revenue Fund, CRF.
The reason for the skyrocketing numbers is a resultant effect of years of failure to remit operating surplus and failure to annually audit the account of these MDAs. In cases where an audit is done, some of these government agencies fail to make the reports available to the necessary authority.
In a recent statement by FRC’s executive chairman, Victor Murako, some of the 32 erring MDAs include the National Broadcasting Commission (NBC); Federal Radio Corporation of Nigeria (FRCN); Bank of Industry (BOI); and Nigeria Immigration Service (NIS).
Others in this category are not limited to the National Drug Law Enforcement Agency (NDLEA); and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The Fiscal Responsibility Commission so far
Taxmobile.Online learnt from the FRC’s statement that since the FRC establishment in 2009 by President Yar’adua, it has remitted over ₦2.15 into the Consolidated Revenue Fund as revenue derived from government agencies and corporations.
FRC’s recent statement via its Executive Chairman
“Sadly, many MDAs persist in defaulting and practically keeping money away from the federal government’s reach for funding its budgets. Our records indicate that over ₦1.2 trillion is still in the hands of defaulting MDAs,”
“These figures are confirmed from our analysis of the annual audited financial reports submitted to our commission by the concerned agencies.
“Much more is yet out there in the hands of MDAs that either has failed to dutifully audit their accounts or that have done so, but choose not to forward copies of their audited financial reports to the commission as required by law.”
“Through the persistent and continuous engagement of MDAs by the Fiscal Responsibility Commission and especially with the support of the National Assembly, the Federal Government’s share of operating surplus from these corporations has continued to increase over the years.
“From our records, the total figure paid as operating surplus since the establishment of the FRC to date is beyond ₦2.15tn which, by the way, could not have been possible without the Act and the commission, given that there would have been no law, rule, regulation or institution requiring such returns.”
Recall that earlier this month, the senate had hinted that some MDAs did not remit over ₦3 trillion to the CRF between 2014 and 2020.